Getty Images going private

Getty Images, the world's largest distributor of stock photos and digital content, is set to go private, the company said.

The Financial Times reported Monday that the company's board accepted a $2.4 billion buy-out from San Francisco private equity firm Hellman & Friedman.

Hellman will pay $34 per share cash, representing a 55 percent premium over Getty's closing price Jan. 18, the last trading day before the firm said it was considering a possible sale.

The deal is expected to close in the second quarter. Under its terms, the new owners are contributing more than $1billion in equity. Most of that money will come from Hellman & Friedman while the remainder is a result of holdings that Getty Investments.

Barclays Capital, GE Commercial Finance and RBS Greenwich Capital have committed to provide about $1 billion in financing, the newspaper reported.

The company has faced tough times as its clients have shifted to buying lower-cost and lower-resolution images, mostly for the Internet, The Times said.

Last month, Getty reported a 7 percent drop in fourth-quarter earnings to $28.5 million.

Copyright 2008 by United Press International